Most people want to make good financial decisions, but MANY have never had the opportunity to learn how. Unlike math, English or science—personal finance is an at-home curriculum learned either through trial and error or, for better or for worse, mom and dad.
One of the simple beauties of being a child is not having to stress about, or even think about, 钱. 然而, once little Timmy is handed his first paycheck there's nothing stopping him from spending it all in one place. Many young adults begin earning a monthly income without a shred of know-how toward managing their personal finances; the metaphorical equivalent of entering into a NASCAR race before taking drivers ed. By introducing practical financial lessons to your children early on, you can teach them how to spend wisely and delay gratification. 因此, shaping your child into a patient and sensible person that may think twice before going into debt to buy something he or she 希望 rather than 需要.
Here are some effective ways to increase your child's 钱 smarts while still letting "kids be kids."
1.) Use teachable moments
Children learn about 钱 by observing adult behavior, so you want to be ready to respond to your child’s curiosity about 钱 right away. For example: When getting cash from the ATM, explain to your child that you are taking 钱 out that you had previously put into your account.
2.) Use an allowance as a teaching tool
Keep in mind that the purpose of an allowance is to teach 钱 management, not the value of labor. Having an allowance allows a child to practice making his or her own 钱 decisions. The next time you go to the store, tell your kids to bring 钱 if they think they might want to buy something. If they ask you for something after running out of their own 钱, explain that they'll have to wait until next allowance day.
3.) Use the three-jar system
Many parents are ditching the ol' piggy bank for the clever three-jar system. Three clear jars give kids a visual representation of their 钱 coming in and going out. Label one jar for saving, one for sharing and one for charity. Financial literacy is about making choices. The three-jar system is a great framework for you to teach your child to make choices with his or her allowance.
4.) Help him or her set a savings goal
Think of something that your child has on his or her wish list. Help them set a savings goal and discuss ways they can achieve that goal. This is a GREAT motivator for saving 钱.
Introducing these practical lessons will teach your kids the value of a dollar, promote fiscal accountability and make them less reliant on the 十大网投官方入口 of Mom and Dad. It's never too early (or late) to start raising a responsible 钱 manager. Try these tips yourself and let us know how they helped.
